Dawn Airey, the subject of the most high profile UK media transfer this year (see Airey Leaves Channel 5 Top Post For BSkyB), is to leave Channel 5 at the end of the week as speculation grows that a tie-up with Rupert Murdoch’s BSkyB is set to become a reality.
Airey was on a year’s notice but RTL, which has a 65% holding in Channel 5, was concerned that there would be a conflict of interest if she was allowed to remain in charge of the network. Severance terms were agreed yesterday and Airey is set to take up her new post as managing director of Sky Networks.
The developments of the past week have given rise to renewed speculation that Murdoch’s News Corp is preparing to bid for a stake in Channel 5. Earlier this month, RTL ruled out a move for the 35% share owned by Lord Hollick’s United Business Media (see RTL Not After ITV Or Remaining C5 Stake) but it has since indicated that it would ‘welcome’ BSkyB as a partner if it decided to invest in the station. RTL’s good grace over the departure of Airey is seen as further evidence that it wants to stay on good terms with the satellite broadcaster ahead of a possible deal.
Nonetheless, a number of stumbling blocks remain in place. Under current media ownership laws, News Corp cannot buy more than 20% of UBM’s stake and although these restrictions are to be lifted next year (see RTL Chief Calls For Level Playing Field On Media Ownership), there is no guarantee that Hollick would be willing to sell. Alternatively, BSkyB may decide to concentrate on developing its free-to-air digital stations instead of buying into an established terrestrial channel.
